Daily Oil Chart - Latest Crude Oil Prices 30th June 2009
Yesterday’s sharp rally in crude oil prices has been attributed to a variety of factors not least of which was a further bout of Dollar weakness which is expected to continue throughout this shortened trading week. Other reasons cited include China’s decision to add to its strategic reserve over the next 5 years as well as the ongoing problems in Nigeria. I was asked recently why daily oil prices can be sensitive to problems in Nigeria and one reason is the quality of oil and the ease with which it can be converted to gasoline. From a technical perspective the issue now is whether by breaking back above the $70.00 mark and finishing $2.75 higher to close at $71.67 was enough of a move to propel crude oil prices towards our interim target of $75 per barrel and yesterday’s “outside day” candle may well have provided the necessary momentum required. The key to any move higher will now be a break and hold above the $72.50 price point which will then confirm that oil prices have indeed broken out of the June consolidation at this price level. If this is coupled with a re-crossing of the 9 and 14 day moving averages then this should provide the correct mix of technical elements to achieve the target outlined above.
The short, medium and long term trends are bullish.
WTI:
Support: $68.35 (yesterday’s low) Resistance: $72.78 (high of 16/06/09)
Support: $68.07 (low of 24/06/09) Resistance: $72.30 (high of 19/06/09)
Support: $66.67 (low of 22/06/09) Resistance: $71.91 (yesterday’s high)
OIL (BRENT):
Support: $68.10 (yesterday’s low) Resistance: $72.40 (high of 16/06/09)
Support: $68.05 (low of 25/06/09) Resistance: $71.96 (high of 19/06/09)
Support: $67.58 (low of 24/06/09) Resistance: $71.42 (yesterday’s high)
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